TowerGroup experiences layoffs

SageCircle has received credible intelligence that TowerGroup has  initiated a job action resulting in analyst lay offs. We will continue to provide updates as we learn new information.

 

Update: 7/9/09 9:07 am PT -Initial post. Sent request for confirmation to TowerGroup’s press office

Update: 7/9/09 9:28 am PT – Spoke with TowerGroup’s PR agency and they are checking with Tower about the SageCircle request

Update: 7/9/09 10:01 am PT – First analyst confirmation. Added to list below.

Update: 7/9/09 11:01 am PT – Another analyst added to list

Update: 7/9/09 11:32 am PT – Two analysts added to list

Update: 7/9/09 12:12 pm PT – One analyst added to list

Update: 7/9/09 1:50 pm PT – two analysts added to list

Update: 7/13/09 9:37 am PT – one analyst added to list

Update:7/13/09 9:46 am PT – report that entire European operation closed, except one analyst

Update: 7/13/09 2:27 pm PT – response from Tower about Euro cuts 

Of course, layoffs impact real people with families and obligations. Often AR people are genuinely friendly with the analysts they work with and this sort of news can be a shock. Unfortunately for AR professionals, analyst firm layoffs also raise important issues that need to be addressed ASAP no matter how much sympathy they feel for the analysts caught in the layoffs.

Related reports and obsservations

9/13/09 2:27 pm PT – from Bob Egan, TowerGroup head of research, via Twitter: “@carterlusher We remain very strong and committed to Europe with 3 in region analysts backed by an experienced team of global analysts.”

9/13/09 9:54 am PT — How much of this reflects business issues with TowerGroup versus its owner, MasterCard? For instance, the last layoffs at IDC were mandated by across-the-board IDG cuts.

9/13/09 9:46 am PT – Credible repot that entire European operation, both analysts and sales, were laid off with exception of one analyst left in London.

TowerGroup Official Statement

None at this time. Will be added should TowerGroup decide to issue a statement.

Background

For background on why some firms are experiencing layoffs please read  Are the vendor-centric analyst firms heading for tough times? Will end-user centric analyst firms do fine? 

To see a roundup of firms that have experienced layoffs this year please read Listing of analyst firms who have laid off analysts in 2009.

Analyst List

1. Hines, Patricia – wholesale
2. Wheatcroft, Carol – European banking and payments
3. Price, Tom – sell side
4. Hamermesh, David – consumer lending
5. Brogan, Tom – delivery channels
6. Kaya, Inci – cost efficiencies and emerging trends, IT spending, sustainability
7. Vyas, Charul – emerging technologies
8. Garcia, Virgina – cross industry practice (resigned?)

What should you do if one your top ranked analysts is caught in a job action?

This is becoming an all-too-common post these days with frequent job actions — unannounced – by one analyst firm or another. A SageFlash has been sent to clients with recommendations on next steps AR should do. It is further recommended that you set up an inquiry to discuss how to apply these steps to your particular situation. We can do individual calls as well as a teleconference for your entire team.
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Non-clients can quickly and easily sign up for a two-hour Advisory Hour Block for only $495. Please give SageCircle a call at 503-636-1500 if you want to discuss the implications of this layoff.

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